they've lost $15,000,000 a month in subs since cata launched with more expected to be announced later today.
they're not broke, but that is enough money to nearly cover all their wow server costs
Broke isn't the problem here.
Share price is based on current earnings and expected future earnings. Shareholders pay more for stock in companies that make more money, which is pretty obvious.
When earnings fall and, worse, forecasted earnings fall, the share price drops. This means investors lose money. Not just money if they sell the stock but potential earnings that they could have earned by buying another stock.
This upsets shareholders. That upsets the board. That upsets ActiBlizz management, who's bonouses are tied to share price for this reason.
So to get share price back up, companies have a cheap trick. They reduce expenditures. For some reason, this cheers up shareholders, who think the company is doing something. It may actually boost profit short-term but mostly the effect is psychological.
However, this is bad because often it's just not excess expense being cut. Often, these companies are slashing valuable staff and programs for a short-term share boost but its at the cost of long term profits. However, it protects the manager's bonouses, at least in the short term.